Do you have a loved one with disabilities or other functional needs? If so, adding a special needs trust to your estate plan may be a smart move.
It’s a good idea to consider your situation carefully before adding any new trust or element to your estate plan. Working with a legal professional will help you make a decision that is right for you and your family, as well.
The special needs trust
With a special needs trust, you can provide financial benefits and support for someone in your family with a disability or functional need. The benefit of this is that with this trust, you will not impact the government benefits they receive.
Specific benefits of a special needs trust
Creating a special needs trust is a good way to ensure someone in your family is cared for. They can continue to receive financial support from you and get the benefits they are entitled to from the government, such as Medicaid or SSI.
There are other benefits offered by establishing a special needs trust as well. These include:
- The ability for your family member to continue receiving needs-based government benefits
- Protect against financial abuse
- Control who inherits the trust when the individual dies
- Funds may be inaccessible to creditors or lawsuit winners
Determining the right type of special needs trust
There are different types of special needs trusts you can set up. Because of the options and complexities involved with all the options, it’s best to work with someone in the industry who can determine what option best suits your needs. In the long run, this will help you protect your loved ones and have confidence that they are cared for after you pass.